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Sayid is the sole shareholder of an S corporation in Hattiesburg, Mississippi. At a time when his stock basis is $20,000, the corporation distributes appreciated
Sayid is the sole shareholder of an S corporation in Hattiesburg, Mississippi. At a time when his stock basis is $20,000, the corporation distributes appreciated property worth $40,000 (basis of $20,000). There is no built-in gain. Sayid's taxable gain is:
$20,000 | ||
$0 | ||
$30,000 | ||
$40,000 | ||
None of the above |
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